Gold Bullish EMA Crossover – Bearish Butterfly In Action

The yellow metal made a bullish move during the late Asian session due to the weakened dollar. It appears the bulls are switching their...


The yellow metal made a bullish move during the late Asian session due to the weakened dollar. It appears the bulls are switching their investments from Greenback to Gold before the Fed Chair Powell testimony later this week.

Fed Chair Powell Testifies

Powell is due to testify on the semi-annual Monetary Policy Report before the House Financial Services Committee in Washington DC on Friday, which will be his first testimony as a new Fed Chair. Soon we’ll see if he keeps dovish or switches to a hawkish stance.

Due to the uncertainty, investors are moving to a safe haven investment while selling the Greenback. Gold gained bullish momentum when the 20 periods EMA (red) crossed the 50 periods EMA (blue).

Gold - Hourly Chart

Gold – Hourly Chart

For now, Gold is forming a bearish butterfly pattern, which is likely to complete at $1,345. You can see the precious metal has entered the overbought zone, meaning the bullish sentiment is likely to weaken soon.

Gold/XAU/USD – Trading Plan

Since our earlier trading signal on Gold closed, we need to wait for $1,344/45 to take a sell position below it.

Good luck!

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

Related Articles

Comments

0 0 votes
Article Rating
Subscribe
Notify of
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

HFM

Doo Prime

XM

Best Forex Brokers